Q1. "Wimble Don Racquets Inc." is a manufacturer and seller of tennis racquets. They make four different models: Murray, Federer, Djokovic, and Nadal. Information about the production of these Racquets is in the following table: Tennis Raquet Labour Labour Composite Composite ($17/hr) ($2/g) (hrs) 1.5 2 Murray Federer vestigate Djokovic Nadal 2.5 4 Djokovic Nadal $ 25.50 $ 34.00 $ 42.50 $ 68.00 Tennis Raquet Price Total Sales (Units) Murray $75.00 3000 Federer $ 85.00 4000 $ 95.00 5000 $105.00 6000 $ $ $ 3.5 $ 2 3 3 4.00 6.00 6.00 7.00 String (cm) 4 5 6 7 String ($0.45/cm) $ 1.80 $ 2.25 $ 2.70 $ 3.15 Production is constrained by having only 14,500 hours of labour, 18,000 grams of composite (i.e. plastic), and 26,000 cm of string (i.e. nylon). Do the following using excel and solver and other functions. Please consider each independently and put each in a separate worksheet: a. Assuming there are no constraints, what is the profit? b. Assuming you must keep within the constraints, what is the optimal production amount of each model to maximize profits and what are the profits? c. Assuming you can reduce the labour hours required for the Djokovic and Nadal models to 2 hours, what is the optimal product per model and what is the profit? d. At what price level per racquet for the Nadal racquet would it just marginally result in the optimal solution being to produce only Nadal racquets and what would the profit be? Explain how you did this calculation. e. Assuming there is a labour shortage and only 8,000 hours of labour are available, what is the ontimal solution.
Q1. "Wimble Don Racquets Inc." is a manufacturer and seller of tennis racquets. They make four different models: Murray, Federer, Djokovic, and Nadal. Information about the production of these Racquets is in the following table: Tennis Raquet Labour Labour Composite Composite ($17/hr) ($2/g) (hrs) 1.5 2 Murray Federer vestigate Djokovic Nadal 2.5 4 Djokovic Nadal $ 25.50 $ 34.00 $ 42.50 $ 68.00 Tennis Raquet Price Total Sales (Units) Murray $75.00 3000 Federer $ 85.00 4000 $ 95.00 5000 $105.00 6000 $ $ $ 3.5 $ 2 3 3 4.00 6.00 6.00 7.00 String (cm) 4 5 6 7 String ($0.45/cm) $ 1.80 $ 2.25 $ 2.70 $ 3.15 Production is constrained by having only 14,500 hours of labour, 18,000 grams of composite (i.e. plastic), and 26,000 cm of string (i.e. nylon). Do the following using excel and solver and other functions. Please consider each independently and put each in a separate worksheet: a. Assuming there are no constraints, what is the profit? b. Assuming you must keep within the constraints, what is the optimal production amount of each model to maximize profits and what are the profits? c. Assuming you can reduce the labour hours required for the Djokovic and Nadal models to 2 hours, what is the optimal product per model and what is the profit? d. At what price level per racquet for the Nadal racquet would it just marginally result in the optimal solution being to produce only Nadal racquets and what would the profit be? Explain how you did this calculation. e. Assuming there is a labour shortage and only 8,000 hours of labour are available, what is the ontimal solution.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Q1. "Wimble Don Racquets Inc." is a manufacturer and seller of tennis racquets. They make four
different models: Murray, Federer, Djokovic, and Nadal. Information about the production of these
Racquets is in the following table:
Tennis Raquet Labour Labour Composite Composite
($17/hr)
($2/g)
(hrs)
1.5
2
Murray
Federer
vestigate
Djokovic
Nadal
2.5
4
Djokovic
Nadal
$ 25.50
$ 34.00
$ 42.50
$
68.00
Tennis Raquet Price Total Sales
(Units)
Murray $75.00
3000
Federer $ 85.00
4000
$ 95.00
5000
$105.00 6000
$
$
$
3.5 $
2
3
3
4.00
6.00
6.00
7.00
String
(cm)
4
5
6
7
String
($0.45/cm)
$
1.80
$
2.25
$
2.70
$ 3.15
Production is constrained by having only 14,500 hours of labour, 18,000 grams of composite (i.e.
plastic), and 26,000 cm of string (i.e. nylon).
Do the following using excel and solver and other functions. Please consider each independently and
put each in a separate worksheet:
a. Assuming there are no constraints, what is the profit?
b.
Assuming you must keep within the constraints, what is the optimal production amount of each
model to maximize profits and what are the profits?
c. Assuming you can reduce the labour hours required for the Djokovic and Nadal models to 2
hours, what is the optimal product per model and what is the profit?
d. At what price level per racquet for the Nadal racquet would it just marginally result in the
optimal solution being to produce only Nadal racquets and what would the profit be? Explain
how you did this calculation.
e. Assuming there is a labour shortage and only 8,000 hours of labour are available, what is the
ontimal solution.
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